Top 3 factors to build a gold standard market access capability for your organization
In the last decade, a fundamental shift happened in the Pharmaceutical market access landscape: cuts of healthcare spending in developed countries, rise of emerging markets revenue contribution, adoption of international reference pricing by new markets, new types of price controls, new pressures from the legislation, etc. This shift created lots of new challenges to pricing and market access teams at affiliate, regional and global levels. Teams have to perform a whole new set of activities and tasks and do it better, faster and more efficiently than before. In order to meet payers’ expectations and outperform competition, pricing and market access teams require new capabilities and a rethinking of the process of price management throughout life cycle, launch activity management and collaboration across channels and geographies.
If you want to build a next generation global pricing and market access capability, you need to look at the systems, data, people and processes closely and develop an execution plan.
In this article, I will share the top 3 factors that can change the standard of your market access capability and help you build the gold standard for your organization.
- Rethink your Data – Historically, master data is owned and maintained by logistics and operations teams. Commercial systems used to simply reuse the data structures available. As a consequence, commercial teams end up spending huge amount of time in many non-value added activities to maintain the data integrity and compliance. For example, local packs (country packs/SKUs) are created in ERP systems based on the logistical needs such as where the manufacturing plant is located, what are the packaging needs, etc. Every time there is a change in logistics, commercial teams are spending a huge amount of time to keep pricing and reimbursement data up-to-date, even though there is no change in the commercial strategy of that drug in the market. With operational master data, it is not easy to cross reference prices across geographies or develop analytical capabilities and insights that help in reducing price erosion. Most of the time, new systems focus on automating the repeatable tasks and reducing the amount of time it takes to complete the process. However, there is a critical need to rethink the data management process from end-to-end in order to build a successful global price management system. This is the only way for pharmaceutical companies to deal with new complex international referencing pricing strategies and to control that price erosion is reduced in the most efficient manner.
- People Alignment – In the vast majority of global roll-outs, it is easier to phase the deployment based on business unit, geographical scope or a single function. However, whereas new price legislations require price referencing across geographies (eg.: Asian markets referencing Latin America prices), price management processes are spread across cross-functional teams (eg.: Market Affiliate, Regional Pricing & Market Access, Finance, Supply Chain, etc.). This dynamic creates plenty of new challenges for global pricing and market access systems implementation. All dependencies need to be carefully planned in order to ensure the best user adoption. It is extremely important to identify the cross-functional stakeholders and develop a personalised communication plan for each stakeholder type. System design should involve market affiliates and take into consideration cultural and organizational aspects of market access teams to guarantee successful roll-outs.
- Measure, Document and Communicate the Value – The introduction of new systems and processes by global IT/Business teams are quite often seen as new controls and checkpoints by market affiliates, thus resulting in poor adoption. Market affiliates should see the benefits of the new system: how modern governance and improved analytical capabilities will improve their day-to-day execution must be clearly documented and measured, and should be part of the communication strategy. Failing to develop a comprehensive value communication plan will result in a poor adoption of the system and often ends up defeating the fundamental purpose of the new global market access tool.
In future blogs, we will explore further topics on how to build a business case for a global price management system, and the different factors that help measure the maturity of existing processes, etc.
Meanwhile, I invite you to discover how Model N Global Pricing Management solution helps Pharmaceutical companies maximize revenue by enabling users to optimize and protect prices globally throughout the entire lifecycle of the products.